HDIL not to sell Kochi SEZ land; to develop IT infrastructure

MUMBAI: Following relaxation in SEZ norms, debt-laden property developer HDIL has decided to scrap plan to sell the 70-acre land parcel at Kochi Special Economic Zone and is now looking to construct IT infrastructure there.

"We have decided not to sell the Kochi land parcel. We will go ahead with our plans of developing IT and IT-enabled services infrastructure following the recent government decision to amend the SEZ Act, especially in the IT/ITeS sector, as this has given us the confidence to relook at our plans and to develop IT infrastructure," HDIL Finance Vice President Hari Prakash Pandey told PTI here.

The company had planned to set up an IT park on the 70-acre land with a planned investment of Rs 2,300 crore. However, in June this year it decided to abandon the project and sell the land to mobilise funds and utilise it for debt repayment as well as for the expansion of the Mumbai metropolitan region.

Pandey said the company will be reworking on the overall master plan in the wake of recent changes in SEZ regulations and taking it forward. "We will develop the project on our own," he added.

Last week the government relaxed SEZ rules concerning minimum land requirement and sale of units to make the scheme more attractive for investors.

The package of reforms includes reducing the minimum land area requirement by half for different categories of SEZs, an exit policy by allowing transfer of ownership of SEZ units including sale and doing away with minimum land requirement criteria for IT/ITES zones.

"We believe that after the amendment, demand in tier-II cities will improve and prove to be investor friendly," Pandey added.

HDIL had posted 84.57 per cent fall in net profit for the June quarter at Rs 16.25 crore as against Rs 105.38 crore in the corresponding period last fiscal.

Its total income for the quarter under review stood at Rs 160.84 crore from Rs 210.58 in the year-ago period, registering a decline of 23.62 per cent.

The company managed to reduce its standalone debt by Rs 203.32 crore to Rs 2,940.01 crore. On consolidated basis, its debt reduced by Rs 188.33 crore to Rs 3,830.10 crore.

"We have reduced our debt considerably by Rs 203.32 crore on a standalone basis and achieved a debt-equity ratio of 0.34. Going further, by the end of the fiscal, we plan to further reduce our debt to Rs 2,200 crore and up to Rs 3,400 crore on standalone and consolidated basis, respectively," Pandey added.